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Verdicts & Settlements(July 18, 2005): SBC Yellow Pages to pay $21,692,980 in settlement.

Missouri Lawyers Weekly

| July 18, 2005 | COPYRIGHT 2002 Dolan Media Newswires. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Missouri Lawyers Weekly Staff

$21,692,980 settlement Two companies settled a class action lawsuit with Southwestern Bell Yellow Pages after SBC started charging a late fee to advertising customers who failed to pay their bill on time.

On July 1, 2001 SBC began charging a $25 flat fee to every customer that made a late payment, referred to on a customer's bill as a "Collection Activity Fee." SBC claimed they were allowed to charge the fee because that fee represents "collection costs" under the terms and conditions of the parties' contract.

Liberty Cellular, Inc. and Blast, Inc. claimed that their advertising contracts did not allow for …

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